The company attributes the abrupt closure to a “shift in market dynamics” and challenges stemming from the “broader economic climate.” These factors have reportedly led to a “sustained decline” in the performance of the plant-based beverage category, making continued operations at the Sudbury facility financially unviable. This highlights the volatility within the burgeoning, yet competitive, alternative dairy sector and the rapid changes in consumer preferences that can impact large-scale investments.

The Sudbury plant has a long history, initially opening in 1962 as a distribution and production center for Lactalis fluid milk products. It was then shut down in 2022 for a major conversion aimed at shifting its focus entirely to plant-based beverage production. While Lactalis has not disclosed the exact number of employees affected by this latest closure, during its 2024 reopening, the company had indicated there were 25 individuals working at the facility.

This closure raises questions about the efficacy of government support for new ventures when market conditions rapidly change. The NOHFC funding was specifically allocated to boost agricultural business in Northern Ontario, and the quick turnaround from reopening to closure, despite public investment, will undoubtedly be a point of discussion for regional economic development agencies and agribusiness policymakers.